Accurate Spending Categories

You need to have accurate spending categories to see where your money is going each month and where your areas of opportunity are. Some people over spend in their grocery category or their misc purchase category. These categories will be very unique to you and what your life entails. My categories range from pet medications to my daughters school fees to utilities for my home. It just depends on what you have going on.

Accurate Income Projections

This requires you to print out bank statements from at least 3 months and go through your income to get an average income to put on your budget. Some months may vary with different circumstances. If you are doing a new budget system currently but you have been laid off due to COVID-19 that would be a circumstance where you have zero control. You do however have the opportunity to pick yourself up and generate income by any means necessary.

Categories for Irregular Spending

This means a category for random things that come up each month or new subscriptions you’re paying for. Typically your budget will come in close to what you project but there will be times where you overspend at Target on clothes when your budget only called for groceries. This means you have budgeted for these things in that irregular spending category to cover times like this where you purchase many different types of things with one type of budget. Like going to Target for groceries and buying clothing at the same time.

Tracking Cash Purchases

Tracking cash purchases might not seem like a big deal but it is crucial to keeping tabs on all your purchases. If you are really trying to keep a close eye on your transactions then I would recommend getting the Microsoft Office Lens app for your phone and taking a picture of all cash receipts and then putting them in a folder on your phone or the Google Drive for safe keeping. This is great especially for self employed individuals to keep track of cash purchases and business expenses for tax purposes.

Plan for Major Purchases

You must always keep a list of ongoing goals whether they are short term or long term so you can incorporate them into your budget each month. You should have accounts called “sinking funds” for these goals.

7 Sinking Funds to Include in Your Budget:

1. Christmas
2. Important Birthdays/Events
3. Car Maintenance
4. Home Repairs
5. Pet Expenses
6. Travel
7. Medical Costs

4 Rules For a Successful Budget:

1. Give every dollar a job
   • You’re the boss. When you earn money, you prioritize how you’ll use it.
2. Embrace your true expenses
   • Turn large, less-frequent expenses into manageable, monthly bills.
3. Roll with the punches
   • Be flexible and address overspending as it happens. No guilt necessary.
4. Age your money
   • Consistently spend less than your earn, and be more than prepared for the future.

Those negative feelings associated with money will subside- the stress, anxiety, confusion, and shame gets replaced with confidence, calm, and even joy and excitement as you really start to feel in control of your money and tap into the potential of what it can do in your life.

Not knowing where to start is OKAY. Trust me, you are not alone. So many people struggle with those scary wandering around in the dark feelings when it comes to their money.

I grew up around the financial world. Budgeting and saving is like second nature to me. I have done my budget since I was 18 years old. Once I got my first real job outside of my family’s business and I LOVED shopping at Target. I had to figure out a way I could save money but also have fun and buy myself something I wanted.

Start With Your Budget

Start with your budget. Your budget is the road map or blueprint to guide you where ever you want to go. Budgets are LIFE. Every month I customize my own budget along with my monthly clients so we can see our areas of OPPORTUNITY. These are the categories you overspend in. Monthly adjustments are something that keep you in check with your goals whether short term or long term. It’s all about Balance, Consistency, and Discipline.

Setting a Realistic Budget

Setting a realistic budget means diving into those sticky areas of your life and seeing what type of spending you have been doing. What type of categories do you have within your budget? Do you have long term goals? Do you have debt? By answering these questions you can track these and make sure every dollar has a purpose. I have a great blog post about the foundation of a budget that you should check out called Budgets: Foundation for a Solid Budget.

Balance

Balance is key in life in general but especially within your finances. You need a balance between spending money and saving it. You should be spending money on bills plus any irregular expenses that pop up throughout the month, but you should also have a “Savings” & a “Retirement” category to toss money in each month as well. These categories being in your budget will ensure you add money to it if you are also consistent and disciplined.

Here are some ways to bring balance to your financial life:

• Set some goals
• If you are a small business owner, pay yourself on a schedule
• Have an emergency fund
• Create a debt payoff plan
• Utilize tax-deferred investment plans
• Create a Will

Consistency

Consistency is so important when it comes to your budget. You have to keep up with your budget to see results. REMEMBER, it is just a blueprint for you to follow. It should not feel like a restriction, but more like a structured guideline that helps you figure out what your areas of OPPORTUNITY are. Consistently checking in with your spending is like going to the doctor for a check up. It keeps you healthy and aware.

Here are some ways to stay consistent with your finances:

• Increase your knowledge
• Increase your income
• Change your money habits
• Be rich, don’t look rich

Discipline

Discipline is hard. I feel you. We all have trouble telling ourselves no. I love buying gifts for my family and friends. Something I have to constantly check in with is WHY I want to spend money. I used to shop A LOT and I racked up a huge credit card bill which took me about a year to pay off. I use that as an example when talking to myself about why it’s probably not a good idea to buy that $400 purse.

Since having kids though, I have transitioned my way of thinking. I now appreciate experiences more than “things” or “stuff.” I want to provide my children with life experiences and teach them to be kind humans rather than purchasing things trying to look “cool.” It is definitely a priorities game. Whatever is a priority to you will end up on your budget. It’s all about Balance, Consistency & Discipline.

Here are a few ways to stay disciplined in the new year:

• Set some financial goals
• Use automation for your bills
• Give yourself a challenge
• Change your money habits
• Get an accountability partner or financial coach

Free Gift

Check out the FREE video series on my 3 Keys to Unlocking Your Financial Freedom! This video series touches on Budgets, Tackling Debt, and Ways to Increase Income TODAY! I created this series for those of you who have been hit hard by COVID-19. I want you to know there is nothing you can’t accomplish and creating a plan of action is always a great starting point.

For many people, saving money is a great challenge. However, others might be quick to spend whatever money comes their way without a second thought. With that, you could easily get off track in your saving process as soon as the unexpected happens. Don’t worry!  You are not alone.

How do you start saving money? Have you heard about the 30-day saving challenge? It is simply a process of saving that involves setting aside a certain portion of your income for 30 days. The implication of this is that there is no room for making impulse purchases – that is, making purchases based on emotions rather than sticking to a budget. You simply set a goal, get committed to the goal for 30 days, and then make the purchase.

With this saving challenge, you’ll be able to keep your spending under control. Apart from helping you to overcome impulse spending, it also boosts your saving attitude over time. 

The following steps are critical in helping you achieve the goal of money saving for 30 days. 

Step 1: Make a budget 

Creating a budget is the first step towards controlling your income and expenses as well as creating a space for savings. You will not have an idea on the amount that could be put into your savings account when you don’t know how much you spend. By creating your budget, you are able to track your spending.

Not only that but you are also able to know what extra money could be added to your savings account. It is recommended that you automate the process. There are spreadsheet apps that allow you to monitor your finances on a daily, weekly, and monthly basis.

Ideally, your monthly spending should be less than your income while still offering you an opportunity to save at the very least 10% of your income. If unrealistic for you, consider saving less. This, however, depends on your monthly income and financial goals. 

Step 2: Set a realistic goal

With the 30-day saving challenge, you are setting a short-term goal. Decide your saving goal. For instance, this may be $500. Beyond having a target amount, it is important that you create a purpose for the money. In the absence of a purpose, you tend to get distracted, thus lacking the motivation you require to keep going. 

Are you planning to go on a short vacation or a family trip? Do you want to get a new car? What about rewarding yourself with a special treat at a nearby restaurant? Irrespective of the goal, there should be a clarity of purpose. A detailed plan for a family trip, for instance, would look like this:

$150 for travel expenses

$300 for lodging

$150 for food

Remember, your initial goal doesn’t have to be so big that it becomes unrealistic – you may not be able to gain enough motivation to meet your target. Rather, start small. However, be sure that you are consistent and control your money spending habits. 

Step 3: Cut down on expenses 

With the expenses you incur on a daily basis, you may be inhibited from having enough savings that could help you meet your financial goal. By carefully observing your spending life, you might have developed certain bad spending habits. Identify and get rid of the habits. 

Can you do without the coffee you often grab every morning as you drive to work? What about the trips you take to the movies every Friday night? How much does dinner-out with friends take away from your income? What if you decide to forgo any of or all these expenses for a period of 30 days, how much will you save to add up to your savings account? 

Notwithstanding, enjoying all these doesn’t amount to careless spending. You may only have to enjoy them less to be able to save more. 

Apart from this, you can also consider trimming down high bills. Think of it, do you utilize all subscriptions you make for phone, internet, and cable? Is it possible to negotiate with your service providers for lower rates and discounts? Of course, you wouldn’t know until you make attempts to reach out to them. Remember, there is no harm in trying. 

Make a list of the bills you pay every month (as stated in your budget), and cancel unnecessary ones or the ones you could no longer sustain. You may be surprised that you can cope without checking in to your Netflix, for instance, for a month. 

Step 4: Start saving 

With knowledge of the financial goal, you have an idea of how much to throw into your savings account each day. For instance, a financial goal of $500 for a 30-day period would amount to saving an average of $17 each day. Remember this is a challenge. The implication is that it is not going to be easy. 

One great mistake you may make is to save into your checking account. You may be tempted to spend it. Rather, invest your money in a high-yield savings account. Through this means, you would be making your money work for you.

Step 5: Earn more to save more

Check your home for items that are lying around – clothing, old bicycles, books, toys, unused appliances, etc. Your kids might have outgrown some clothing items or gifts. You might have received certain gifts that you never used. You don’t have to keep all these. Otherwise, your house becomes cluttered or the items have their values depreciated over time. 

Take stock of the items that could be sold and you might be surprised how much you actually make. This gives you additional cash money. You may want to check out Craigslist or Facebook marketplace to sell your kid stuff. To sell clothes, use ThredUp. It is an online consignment shop. 

Step : Have an accountability partner 

In achieving life goals, there is the need to be accountable for your actions and steps. Otherwise, you may lose motivation along the way. Before going ahead with your saving goal, meet with your accountability partner to share your goal with them. 

Such an accountability partner may be a family member, co-worker, spouse, or even a friend. Usually, they should be people who are committed to helping you accomplish your goal. To sustain their interest, you may also offer to incentivize them.

For instance, if your accountability partner is your wife. You may promise her a night out at her favorite restaurant if she helps you reach your goal within the specified time.

Final thoughts

Saving remains a great challenge that could be overcome. It is possible that you will fail. For instance, you may still go ahead to make impulse purchases despite your decision to avoid it completely. If this happens, don’t have to be hard on yourself. Failure comes with greater lessons than success. With past failures, identify the problem and try as much as possible to avoid it in the future.

Setting goals and achieving them requires great discipline, commitment, and time. The steps provided here will not only help you achieve your short-term goals but will also establish great financial foundational knowledge to prepare you for a better and more secure future.

Free Gift

Check out the FREE video series on my 3 Keys to Unlocking Your Financial Freedom! This video series touches on Budgets, Tackling Debt, and Ways to Increase Income TODAY! I created this series for those of you who have been hit hard by COVID-19. I want you to know there is nothing you can’t accomplish and creating a plan of action is always a great starting point.

It’s a good thing to be in a relationship, especially a healthy one. Everyone wants to be happy, and when one finds such happiness in a relationship, then one should grab the opportunity. Every relationship is marked by certain moments of challenges. In some cases, it could be as a result of infidelity; at other times, it could be as a result of subjugation. One of the partners may even be suffering from delusions of grandeur.

Nevertheless, one of the major causes of problems in relationships is money. As an individual, it’s possible that you have picked some fights with your partner over how or why they spent certain money. It could be the case that they want to purchase a house or car worth $500,000 when the family yearly income is just a little above $60,000. One of you may be hiding your spending from the other.

Don’t panic, you are not the only one facing the ugly situation. Even those that are single often face a similar situation, maybe not with a partner but with a parent or sibling. Despite the fact that you and your partners share certain common qualities, especially intimacy, you may not share the same money habits, goals, and values. Although, you may share debts and other financial challenges. 

The following tips will help you handle your finances and relationships more effectively…

1. Discuss financial goals and values with your partner

Remember when you were single? You probably always loved to eat outside, purchase the newest electronic gadget, or buy the most expensive outfit. This isn’t bad. However, your status has changed now and you need to make some little adjustments. Part of it is to talk about finances with your partner. As the team that you are, you need to talk about your future – your financial goals and how you can collaborate to achieve them.

To start with, each of you can talk about aspects of your family life that will require money. Some of them may include buying a house, taking care of your kids’ education, buying a car, going on a vacation, funds for emergency situations (such as accident, sickness, etc.), acquiring smart home appliances, clothes, among others. Definitely, both of you will want different things. However, the goal is to reach a compromise.

After creating the list, you should then arrange them in order of importance. Whatever you consider the most important, you must give a good reason to support your conclusion. This tells your partner that you show great concern towards their desires. Always seek a win-win solution. Otherwise, you can compromise in such a way that happiness is gotten by the two parties.

2. Learn about your partner’s money habits

Money habits are usually a reflection of one’s upbringing. It is important that you glean information on your partner’s way of handling money and the current state of finances. This also includes their debt profile, savings goals, and retirement plans. Some financial planners recommend that you consider having a look at your partner’s credit report. Through this, you get a clue about their outstanding debts, loans, and credit card accounts. 

Upon confirmation, you may be put off by the revelation. It could be the case that your partner has a huge debt profile and it scared the hell out of you. You shouldn’t panic at this stage. Beyond having some debts, your greatest concern should be what your partner is doing to pay off the debts and fix other financial issues. 

3. Be open and honest about money

In many relationships, trust issues are common, especially when money is involved. When your partner lies about money, it becomes financial infidelity. This can result in more financial problems, stress, unhappiness, and, consequently, your life gets impacted negatively. When this gets to a stage where your partner can no longer cope with it, they may file for divorce, and this brings an end to the relationship.

There is a possibility that your partner is being dishonest with you in terms of their financial state. Here are some indicators to look out for: credit cards are being declined; you no longer notice any bills in the mail; your partner is now afraid to talk about money; among other things. As the team that you are, rather than blame your partner, you can always bear each other’s burden, help out where and when necessary, as well as encourage each other. The goal is to be happy together.

Nevertheless, you have to position yourself in such a way that your partner feels comfortable in telling you about their struggles with money. 

4. Set spending limits for each other

Spending limits are not limitations. Rather, they help you to stay on track in regards to your budget. Depending on your financial state, you can set your limit as you and your partner find it comfortable. The limits could be on a weekly or monthly basis. For instance, you and your partner can agree that neither of you will spend more than $200 every week. The moment you reach your spending limit before the week runs out, you know that all you have left to spend is your time.

Discuss this with your partner during your financial meetings. Remember communication is an important aspect of every relationship, including marriage. 

5. Learn ways through which you can improve your financial situation

How comfortable are you with your present financial state? If you are not, then you need to put on your learning cap. There are different ways through which you and your partner can empower yourselves to improve your financial situation. You can read financial blogs and books; listen to podcasts on finance, budget, and saving; attend workshops, either physically or virtually, among others things.

Through these means, you get exposed to different pieces of financial advice that can help your current financial situation. You also get to know about people who passed through the same situation and how they were able to break through the challenges. 

6. Periodically review your financial plan and goals

Financial meetings do not end with the first meeting where you initiated certain plans and goals. They should be held at regular intervals, which may be weekly or monthly, for necessary appraisal. The reality is this, the fact that you now both share the same financial value and goal does not rule out the possibility of one of you falling short in their financial responsibilities. 

To avoid missing out on payments, have a weekly meeting where you review your accounts along with your spending plan. They also help you to discover the new items that will be included in your budget or the ones you have to expunge, aspects where you are having some challenges, the level of progress you have made on your debts, among other things. Avoid overlooking this important aspect.

 Conclusion

Managing both finances and relationships is not usually fun and can be challenging. However, it is crucial to maintaining a healthy, long-lasting relationship. This means that love is not the only factor that determines a healthy and lasting relationship – money also does. Money doesn’t have to be the basis for the end of your relationship. The earlier you are able to pay attention to money, the better and healthier for your relationship.

Free Gift

Check out the FREE video series on my 3 Keys to Unlocking Your Financial Freedom! This video series touches on Budgets, Tackling Debt, and Ways to Increase Income TODAY! I created this series for those of you who have been hit hard by COVID-19. I want you to know there is nothing you can’t accomplish and creating a plan of action is always a great starting point.

Real Goals: Being financially, mentally, academically, physically, spiritually, and emotionally stable.

Stability is everything.

Being it emotional or physical. You need a solid ground to build anything on. I tell my clients all the time that they need a solid foundation to build on and in financial terms that would be your budget. Your budget is that solid map that tells you what direction to go in. I fully believe that I am more stable in all areas of my life because I am so stable in my finances. Money connects to everything whether we like it or not. It is on the strength of observation and reflection that one finds a way. So we must dig and delve unceasingly into our own selves.

There are so many emotions around money that turn into blocks. Sometimes people don’t even realize that they are subconsciously blocking themselves from wealth. It is a mindset for sure. Diving into those blocks and negative feelings around money will only help you break through those barriers and into your new life. Stability in finances requires Balance, Consistency and Discipline which I say ALL THE TIME. When stability becomes a habit, maturity and clarity follow. Strength and growth come only through continuous effort and struggle. The struggle is real when you are trying to stay disciplined and stick with your budget. I get it.

Stability is necessary for your future economic success. Finances are not stable by any means but you have the upper hand when you are in control of your finances. You want to make your money work for you. Investing is a great tool but way less stable than your average 9-5pm job. Investing is about trends and sadly politics/media but once you figure that out its so easy. I used to think there were major calculations that I had to do in order to figure out my best investing opportunity. WRONG. You just have to know the trends and current events plus be less attached to your money. Investing requires some gambling and you have to be OKAY with that.

Stability Within Your Finances 

It is almost year-end and you tend to reflect on how much you have been able to achieve in regards to your previously-set financial goals. Are you satisfied with the current state of your finances? 

Imagine a world where you don’t have to worry about money to live the kind of life you have always craved for. You have enough to enjoy that vacation, buy a new home, pay your bills consistently and on time, and live comfortably at retirement. Of course, these are possible, however, only with financial stability.

Financial stability is not only possible when you are stupendously rich. In fact, it is not measured by the amount of money you have. Rather, it is all about being confident that your everyday finances are enough to help you reach your financial goals involving zero-debt, savings, and insurance. Only individuals with stability within their finances can cover their basic needs as well as enjoy a comfortable lifestyle.

Achieving stability with your finances is, of course, possible, even in this ever-changing world. It isn’t rocket science. However, it is not as easy as being portrayed. You need to develop good financial habits including planning, organizing, commitment, discipline, and resilience. Financial stability leads to peace of mind, happiness, and long-term satisfaction.

How Do You Achieve Financial Stability?

On the path to financial stability, accepting the addictions that often cause financial instability is a good way to start. These addictions include overspending or impulse spending, gambling, materialism, and paying bills late. With these taken care of, you are on track to making a good headway with your finances. 

It is important to note that there are no shortcuts to achieving financial stability. The steps involved require time, effort, and consistency. The following actions will help you achieve stability within your finances.

1. Create a Financial Plan

Every decision, especially involving finances, should be hinged on a plan. Otherwise, you tend to make the wrong financial decisions. A financial plan helps you gain control over your spending. Usually, a financial plan considers your income, spending, savings, debt, and insurance. In other words, a financial plan gives you an idea about what you earn as against what you owe, thus serving as a blueprint to help you develop a financial budget. 

2. Create a Financial Budget

Once you have good knowledge about your self-worth, then you need a personal budget to help you have absolute control over your spending. The way you spend has a great impact on other financial decisions you make. A budget is organized based on cash inflow (income) and cash outflow (expenses). You may also want to break down your expenses into needs and wants. 

Definitely, there are some basic expenses or fixed expenses you cannot avoid every month. Some of them include food, rent, and water or electricity bills. Others, such as cable subscriptions, can come under not-too-important bills or variable expenses, especially if your income cannot conveniently cater for it.

A financial budget, when you stick to it, helps you to prioritize spending and saving, reduce or eliminate expenses, spend wisely, and make wise financial decisions that can help you achieve financial stability. Nevertheless, a budget must be flexible to allow for modifications in case of unforeseen circumstances.

3. Control Your Impulse Spending

This is apparently a major problem that is common with almost everyone. Money has a way of controlling us so much that we get easily carried away when we have some funds in our wallet. We always want to show we can afford certain things. Impulse spending, especially on such activities as eating out and extensive shopping, drains our finances, thus resulting in financial instability. To avoid this, it is important to control and monitor our impulse spending. Have a second thought before deciding to make any purchase.

4. Spend and Live Frugally

One wrong financial decision is to live above one’s income. The result is often disastrous. Before making the decision to make any purchase or initiate any spending, you may have to ask yourself this question: How easy can I get back each dollar I spend? If you are able to think deeply about this, then you will be careful with your spending.

Do you need a new home or car now? Is that vacation important now or you can still have it some other time? Living or spending frugally doesn’t imply that you don’t want to enjoy the comfort life has got to offer. However, it helps you to be disciplined as well as identify spending areas that are not necessary, at least, at the moment.

5. Pay Off Your Debt On Time

If you have some debts to settle, it might be necessary for you to develop a debt payment plan. List out your debts (personal loans, credit cards, etc.) and organize them in either ascending or descending order. In your budget, make allocations for debt settlement, even if you have to deny yourself of certain benefits. Remember, late payment of debts can lead to increased interests, and this means more debts.

Once this process continues, you will be surprised at how “easy” it is to get out of debt. If you have credit card debt, you may have to consider using cash to make purchases. This prevents you from spending more than you have. Debt elimination process often takes a long time. However, it is a rewarding process. When you are out of debt, you will be able to make other financial decisions.

6. Create an Emergency Fund

Who ever thought they would get sick at a time they are down financially? Or get involved in an accident that will necessitate treatment? The reality is that life comes with unexpected occurrences that will require your attention. How do you factor this in your budget when you barely have enough money after your expenses?

Your best bet is to create an emergency fund. Emergencies could involve a major car repair or having to take an unplanned trip. An emergency fund not only serves as a backup plan, but it also helps you to navigate through a tough time with little or no financial stress.

7. Make Plans for Retirement

You are 25 and you feel you still have a whopping 35 years before you attain retirement. You will be surprised at how fast time flies. Remember that your salary will stop someday, as a salary earner. There is no better time to start saving or investing for your retirement than now. Otherwise, you may be jeopardizing your future with uncontrolled spending in the present. Little money snowballs into a large amount in no time.

Check if your company has a 401(k) plan for its employees. The plan becomes more necessary if your employer will match some of or all your contributions to your company retirement plan. You can also consider a Roth IRA.

Key Takeaway

The actions discussed above are the right steps towards achieving stability within your finances. You should have started yesterday. However, another opportunity is NOW. Remember, you shouldn’t get too focused on saving and investing that you forget to enjoy life. Sure, it costs money too. However, it also contributes to a healthy and happy life. You may only have to consider cheap options, such as going for a show, having a massage once in a while, or inviting a few friends for a game night.

Free Gift

Check out the FREE video series on my 3 Keys to Unlocking Your Financial Freedom! This video series touches on Budgets, Tackling Debt, and Ways to Increase Income TODAY! I created this series for those of you who have been hit hard by COVID-19. I want you to know there is nothing you can’t accomplish and creating a plan of action is always a great starting point.

Debt is a tricky thing and no one wants it but everyone has it because thats just what you have to do in order to have nice things. WRONG! First of all, we want to BE rich not LOOK rich so that mentality needs to check itself at the door. I’m a firm believer in saving for goals and paying in full. You need to have discipline in order to thrive. Saving is one way to reach for a goal and not acquire debt. Yes, saving may take a while to reach a major goal but in the end its worth it if you have zero debt. Your credit will be better and once you achieve that goal it will be so sweet. These two methods are just a couple examples of ways to tackle debt.

Snowball Method:

The snowball method is one way to pay off debt. You basically choose the loan or card with the smallest amount in debt and make the maximum payments you can. You will pay more in interest in the long run but if you thrive on accomplishing small goals then this is the method for you. This is my personal option because I am one of those people who really like crossing things off my list and when I can get the small debts out of the way first it makes me so excited. Financial stuff doesn’t have to be scary you just have to look for the positives in everything you do including your finances.

Avalanche Method:

The avalanche method is the second way to tackle debt. This is where you choose the loan or card with the highest interest rate and take that one down first. You will pay less in interest over time and its best for people who thrive on numbers over emotions. I see the benefits in using this method but like I said before, I enjoy small wins. This one definitely will make sense to a lot of people and its probably the smarter way to go if you want to pay less in the end.

Here are my 4 strategies to help you tackling debt:

1. Make a budget and stick to it.

Creating a budget will change the game in regards to your financial wellness. A budget is an estimate of income and expenses for a set period of time. A budget allows you to gain feedback on areas of opportunity. It helps you check yourself and set up goals for short and long term. This is something that must be a priority. A budget is basically your financial plan for a defined period, often a month or one year. It may also include planned trips, major purchases, sales volumes and revenues, costs and expenses, assets, liabilities, and cash flows. This is a vital tool for any person who owns a small business.

2. Set realistic financial goals. If you can’t pay cash for it then don’t buy it.

Goals are everything. When dealing with money it’s smart to set short term and long term goals. Something to work towards is always a great motivator. When setting goals it’s a crucial thing to save money. Meaning, if you don’t have the money don’t spend the money. You’ll never reach your goals if you spend all the money you bring in each month. Budgets and financial goals go hand in hand. It lays the foundation to set you up for success. You will be able to crush your financial goals with a budget.

3. If you use a credit card, pay on time and more than the minimum payment.

Global credit card debt continues to rise. Make the minimum payment on every card, every month, but throw whatever extra money you have at the one with the lowest balance. When that one is paid off, take the money you were applying to it, add it to the minimum you were paying on the second card and pay it off. Keep going until all cards are paid. According to incharge.org, the average adult who doesn’t pay off the balance on credit cards each month, owes $7,527 on their credit cards. If there are two adults at home, that’s a little more than $15,000. If there are children in that house, there is usually an urgency to do something about it.

4. Always monitor your debt

Watch for a change in rates and fees and if possible contact the lender and see if you can lower your interest rates or if they would be willing to work with you. It never hurts to ask. The worst thing is they could say no. Checking in on your financial well-being should be a priority. Finances are very uncomfortable and a lot of people don’t like looking at that student loan payment or that debt that’s in collections. For me, its the dentist. I get that sick to my stomach feeling then I start shaking because I always think the worst is going to happen. When there is something that needs to get fixed I just don’t want to talk about it or know about it. Once I fix the issue though, I always feel better.

Free Gift

Check out the FREE video series on my 3 Keys to Unlocking Your Financial Freedom! This video series touches on Budgets, Tackling Debt, and Ways to Increase Income TODAY! I created this series for those of you who have been hit hard by COVID-19. I want you to know there is nothing you can’t accomplish and creating a plan of action is always a great starting point.

Strive to Thrive

These are my 7 principles to live by in order to make your finances work for you. I follow these on a daily basis and it has brought so much awareness to my finances. I talk about these principles in all of my programs and educate my clients on how to implement these steps into their lives. The results of utilizing these principles is like nothing else and if you put your finances as a priority and manage your monthly system its guaranteed to work for you. This is about discipline and creating a positive money mindset to achieve your ideal lifestyle.

Make a plan, create a budget

This is all about how to make S.M.A.R.T. goals. Specific. Measurable. Assignable. Relevant. Time-based. Create a list of your income so you can see what your actual income is per month on average. Create a list of expenses and put them into categories so you can get an idea of where your money is going. Create a realistic budget based on 3 months worth of your bank statements. You will be able to see your areas of opportunity within your budget and how to refine your needs to meet your projected budget. Every household or individual budget will be unique.

Tackle Debt

Get into a solid money mindset so you can acknowledge what you owe and get it organized so you can start tackling your debt. Examine your bills and see what we can get rid of. Explore all of your options in regards to decreasing your interest rates on debt that you may have. Create a clear plan to eliminate your debt and set a time-based goal to do so. This is where discipline comes in. You have to be strategic with your spending and saving when it comes to paying off debt. Open another savings account to put money to pay off debt specifically so it is out of sight out of mind. Debt is scary and no one wants it but some things are out of your control. If you want to take control back follow these principles.

Increase Income

Increasing income is easy. Your basic hobby can be turned into a thriving business nowadays. It just depends on how much time you have to put into it and how much passion and drive you have to do so. I have many universal strategies to generate more income and I can customize those strategies based on your unique lifestyle. This is an opportunity for you to get creative and come up with different ways to increase your income. You know you and you know what you are capable of. Reach for something out of your comfort zone and don’t take “no” for an answer. Everything is negotiable, even your current salary.

Live Below Your Means

Living below your means doesn’t sound very sexy, I know. Being resourceful is a talent that you should acquire. It will benefit you to try and cut back on certain luxuries if you are in a tight spot money wise. For example, stretching your grocery/eating out budget so that you account for every penny. Cooking at home is definitely cheaper than eating out. I know this because I was eating out close to 5 days a week about a year ago. I didn’t have the energy or want to cook at home. I was LAZY. By the end of the day I was not trying to cook dinner AND clean up the mess so Doordash sounded great every night. Until my money was dwindling and my belly was inflating. Frugal living isn’t about being stingy; it’s about being resourceful.

Question Whether You Need It Or Just Want It

I always say, question whether you need it or just want it. This is huge. This is something I have burned into my brain so that whenever I go to purchase something I check in with myself to make sure I am making a good money decision. Print out a bank statement, highlight every expense that was a “want” and calculate the total so you can then set a goal to put that exact amount into your savings accounts the following month. This will show you exactly how much you spend on things you don’t really need so you can then check in with your budget and make adjustments. You are the CEO of your finances and YOU need to make this a priority.

Invest & Save For Retirement

Investing and saving for your future is so important. THIS is something your future self will love you for. You should at least try and save for that future relaxing time. It pains me that society has burned it into our brains that a typical 9-5 job is how life is SUPPOSED to be when you are in charge of your life. If you don’t have the skills to do a job with flexible hours or be self employed, educate yourself. It’s never too late to learn. I personally try and read AT LEAST one book per month just to continue my education. Considering American schools, we didn’t learn too much about personal finance so I am constantly trying to grow my knowledge so I can be the best at what I do and serve with excellence. Look into stocks, craft a solid plan to start saving towards an emergency fund, and think about 401(k) options and retirement plans. If you need more guidance on this topic reach out.

Journal About Your Spending

This topic is one of my favorites for sure for the simple fact that it gets people out of their comfort zone. Journaling about your spending and how it makes you feel will open your eyes to emotions you never knew you had. This will help you check in with your spending habits and see what your spending triggers are. Some people can’t control their spending because it makes them feel better to do an impulse buy so they can suppress their feelings in another area of their life. This is where I want you to put everything out on the table and get down and dirty with your inner self. I want you to open up about anything and everything you have been avoiding in regards to your finances. Look into how overspending affects mental & physical health, learn how overspending impacts your relationships, find out how journaling alleviates stress & boosts mood, and strategize on priority financial problems. This week provides an opportunity for positive self-talk.

Free Gift

Check out the FREE video series on my 3 Keys to Unlocking Your Financial Freedom! This video series touches on Budgets, Tackling Debt, and Ways to Increase Income TODAY! I created this series for those of you who have been hit hard by COVID-19. I want you to know there is nothing you can’t accomplish and creating a plan of action is always a great starting point.